At its 12 December monetary policy meeting, the Bank of Korea (BoK) decided to maintain the base rate unchanged at 2.50%. This is the seventh consecutive meeting in which the Bank decided to keep the rates on hold. The move was in line with market expectations. In its statement, the BoK underlined that economic activity is healthy and that the growth trend remains positive. Nonetheless, monetary officials acknowledged that a certain level of slack in the economy will persist in the coming months, although the output gap is expected to narrow. Regarding price developments, the Central Bank stated that it expects inflation to remain at low levels for now, primarily due to lower global commodity prices. The majority of Consensus Forecast panelists expect the Central Bank to maintain the base rate unchanged this year, with an average forecast of 2.50%. For 2014, panelists see the policy rate ending the year at 2.68%.
Korea Monetary Policy
Central Bank stays put in latest meeting
December 12, 2013
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Korea Monetary Policy Chart
Note: BoK Base Rate in %.
Source: Bank of Korea (BoK).
Korea Economic News
October 25, 2016
The Korean economy slowed down in the third quarter of this year, expanding at the weakest pace in over a year.
October 13, 2016
At its 13 October monetary policy meeting, the Bank of Korea (BoK) announced that it will hold the base rate constant at a record low of 1.25%, which was largely in line with market expectations.
October 5, 2016
In September, consumer prices rose 0.6% over the previous month, which contrasted the 0.1% decrease in August and overshot the 0.2% increase the markets had expected.
October 3, 2016
Korea’s Customs Services reported that exports totaled USD 40.9 billion in September, which represented a 5.9% contraction over the USD 43.4 billion recorded in the same month last year.
September 30, 2016
The forward-looking business confidence indicator (BSI) for the manufacturing sector produced by the Bank of Korea (BoK) rose from 74 points in September to 75 points in October.